H.R. 9571

119 HR 9571 IH: Living Wage for Federal Contractors Act
 U.S. House of Representatives
 2026-07-02
 text/xml
 EN
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 I  119th CONGRESS  2d Session  H. R. 9571  IN THE HOUSE OF REPRESENTATIVES   July 2, 2026   Ms. Adams  (for herself,  Mr. Cleaver ,  Mrs. McIver ,  Mr. McGovern ,  Ms. Norton ,  Ms. Titus , and  Ms. Wasserman Schultz ) introduced the following bill; which was referred to the  Committee on Education and Workforce , and in addition to the Committee on  Oversight and Government Reform , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned   A BILL
To establish a minimum wage for all Federal contractors, and for other purposes.
1.
Short title
This Act may be cited as the   Living Wage for Federal Contractors Act  .
2.
Federal contractor minimum wage
(a)
Federal contractor minimum wage required
An employee shall be paid a basic hourly rate of pay that is not less than—
(1)
$17.00 per hour, for the 1-year period beginning on the first day of the third month that begins after the date of enactment of this Act;
(2)
$19.00 per hour, for the 1-year period beginning on the last day of the 1-year period described in paragraph (1);
(3)
$21.00 per hour, for the 1-year period beginning on the last day of the 1-year period described in paragraph (2);
(4)
$23.00 per hour, for the 1-year period beginning on the last day of the 1-year period described in paragraph (3);
(5)
$25.00 per hour, for the 1-year period beginning on the last day of the 1-year period described in paragraph (4); and
(6)
for the succeeding 1-year period after the 1-year period described in paragraph (5), and for each 1-year period thereafter, the amount in effect under subsection (b) for such 1-year period.
(b)
Determination of inflation adjusted minimum wage
(1)
In general
Not later than the date that is 90 days prior to a new amount determined under this subsection is to take effect for a 1-year period as described in subsection (a)(6), the Secretary of Labor shall determine the amount in effect under this subsection for such 1-year period. The amount determined under this paragraph for a 1-year period shall be an amount equal to the greater of—
(A)
the basic hourly rate of pay in effect on the date preceding such 1-year period; or
(B)
such rate of pay, multiplied by the ratio of—
(i)
the CPI–W of the preceding 1-year period, to
(ii)
the CPI–W for the 1-year period immediately prior to such preceding 1-year period.
(2)
Rounding
If the amount determined under paragraph (1) for a 1-year period is not a multiple of $0.05, such amount shall be rounded up to the nearest multiple of $0.05.
(3)
CPI–W defined
(A)
In general
In this subsection, the term  CPI–W  means, when used with respect to a 1-year period, the Consumer Price Index for Urban Wage Earners and Clerical Workers (United States city average, all items, not seasonally adjusted), or its successor publication, as determined by the Bureau of Labor Statistics, for the base period of such 1-year period.
(B)
Base period
Not later than the date on which the Secretary first determines the basic hourly rate of pay in effect under this subsection, the Secretary shall select the base period to be used for each 1-year period from the following:
(i)
The most recent month for which the CPI–W is available.
(ii)
The most recent quarter so available.
(iii)
The most recent year so available.
(c)
Application to tipped workers
For employees covered under subsection (a) who are tipped employees (as defined in section 3 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(t) )), the basic hourly rate of pay that must be paid to such an employee shall be an amount equal to—
(1)
for the 1-year period beginning on the first day of the third month after the date of enactment of this Act, $13 per hour;
(2)
$16 per hour, for the 1-year period beginning on the last day of the 1-year period described in paragraph (1);
(3)
$19 per hour, for the 1-year period beginning on the last day of the 1-year period described in paragraph (2);
(4)
$22 per hour, for the 1-year period beginning on the last day of the 1-year period described in paragraph (3);
(5)
$25 per hour, for the 1-year period beginning on the last day of the 1-year period described in paragraph (4); and
(6)
for the 1-year period following the 1-year period described in paragraph (5), and for each 1-year period thereafter, the amount in effect under subsection (a)(6).
(d)
Enforcement
(1)
Termination of work on failure to pay agreed wages
Every contract within the scope of subsection (a) shall contain a provision that if the contracting officer finds that any worker employed by the contractor or any subcontractor pursuant to such a contract has been or is being paid a rate of wages less than the rate required by this Act, the Federal Government, by written notice to the contractor, may terminate the contractor’s right to proceed with the work (or the part of the work as to which there has been a failure to pay the required wages). The Government may have the work completed, by contract or otherwise, and the contractor and the contractor’s sureties shall be liable to the Government for any excess costs the Government incurs.
(2)
Authority to pay wages and list contractors violating contracts
(A)
Payment of wages
(i)
In general
A party who violates subsection (a) or (c) shall be liable to an employee for an amount equal to twice the sum of any unpaid wages due to any employee engaged in the performance of a contract.
(ii)
Federal Government payment
The Secretary of Labor, or the head of a Federal agency, as applicable, shall, in accordance with clause (v), pay directly to a worker described in subsection (a) or subsection (c) from any accrued payments withheld under the terms of a contract any wages to be due to the worker under this Act.
(iii)
Right of action
If the accrued payments withheld under the terms of the contract are insufficient to reimburse all the workers who have not been paid the wages required under this Act, the workers have the right to bring a civil action and intervene against the contractor and the contractor’s sureties.
(iv)
No defense
In an action brought under clause (iii) by a worker, it shall not be a defense that the worker accepted or agreed to accept wages less than the minimum amount established under this Act.
(v)
Cross withholding
The total amount determined under subsection (a) or subsection (c) due to any employee engaged in the performance of a contract may be withheld from accrued payments due on the contract or on any other contract between the same contractor and the Federal Government. The amount withheld shall be held in a deposit fund. On order of the Secretary, the compensation found by the Secretary of Labor or the head of a Federal agency to be due an underpaid employee pursuant to this chapter shall be paid from the deposit fund directly to the underpaid employee.
(B)
List of contractors violating contracts
(i)
In general
The Comptroller General shall distribute to each Federal agency a list of the names of persons whom the Comptroller General has found to have disregarded their obligations to workers and subcontractors.
(ii)
Restriction on awarding contracts
No contract shall be awarded to persons appearing on the list or to any firm, corporation, partnership, or association in which the persons have an interest until three years have elapsed from the date of publication of the list.
(C)
Civil penalty
(i)
In general
Any party who repeatedly or willfully violates subsection (a) or (c) shall be subject to a civil penalty not to exceed $1,100 for each such violation.
(ii)
Determination
In determining the amount of a penalty under clause (i), the appropriateness of such penalty to the size of the business of the party charged and the gravity of the violation shall be considered. The amount of any penalty under this subparagraph, when finally determined, may be—
(I)
deducted from sums owing by the United States to the party charged; or
(II)
recovered in a civil action brought by the Secretary in any court of competent jurisdiction, in which litigation the Secretary shall be represented by the Solicitor of Labor.
(3)
Exemption
This section shall not apply to a grant, contract, contract-like instrument, or agreement entered into under the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5301 et seq. ) to which an Indian Tribe or Tribal organization (as such terms are defined in section 4 of such Act ( 25 U.S.C. 5304 )) is a party.
(e)
Regulation
Not later than 180 days after the date of enactment of this Act, the Secretary of Labor shall issue such regulations as are necessary to carry out the purposes of this section.
(f)
Definitions
In this section:
(1)
Contract
The term  contract  means any contract, subcontract (at any tier), or any contract-like instrument a Federal agency enters into for goods, services, or in connection with any activities on Federal lands.
(2)
Employee
The term  employee  means any worker performing work on or in connection with a contract, including any worker whose wages are calculated pursuant to special certificates issued under section 14(c) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 214(c) ), but such term does not include workers who are covered by—
(A)
section 3142 of title 40, United States Code; or
(B)
section 6704 of title 41, United States Code.
(3)
Federal agency
The term  Federal agency  means an executive agency or an establishment in the legislative or judicial branch of the Government, and includes all independent regulatory agencies and the United States Postal Service.
(4)
Independent regulatory agency
The term  independent regulatory agency  has the meaning given the term in section 3502(5) of title 44, United States Code.
3.
Davis-Bacon minimum wage
(a)
In general
Section 3142(b) of title 40, United States Code, is amended to read as follows:
(b)
Based on prevailing wage
The minimum wages shall be the higher of—
(1)
the wages the Secretary of Labor determines to be prevailing for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work in the civil subdivision of the State in which the work is to be performed, or in the District of Columbia if the work is to be performed there; or
(2)
the wage rate in effect under section 2(a) of  The Living Wages for Federal Contractors Act .
 .
(b)
Effective date
The amendment by this section shall apply with respect to contracts entered into on or after the date of enactment of this Act.
4.
Service Contract Act minimum wage
(a)
In general
Section 6704(a) of title 41, United States Code, is amended by striking  section 6(a)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(a)(1)   and inserting  section 2(a) (or section 2(c), in the case of a tipped employee) of  The Living Wages for Federal Contractors Act  .
(b)
Effective date
The amendment made by this section shall apply with respect to contracts entered into on or after the date of enactment of this Act.
5.
Minimum wage for procurement contracts
(a)
In general
Section 6502(1) of title 41, United States Code, is amended by striking  not less than  and inserting the following:
the higher of—
(A)
the prevailing minimum wages, as determined by the Secretary, for individuals employed in similar work or in the particular or similar industries or groups of industries currently operating in the locality in which the materials, supplies, articles, or equipment are to be manufactured or furnished under the contract, except that this paragraph applies only to purchases or contracts relating to industries that have been the subject matter of a determination by the Secretary; or
(B)
the wage rate in effect under section 2(a) of  The Living Wages for Federal Contractors Act .
 .
(b)
Effective date
The amendment made by this section shall apply with respect to contracts entered into on or after the date of enactment of this Act.